There has been some great analysis done on branch profitability over the last few years, and in markets like the US the data means we can very precisely predict when a specific branch is likely to close in the near-term. It turns out there are some fairly predictable pain points or metrics that are warning bells for heads of distribution. The first is simply number of deposits.

If you have a branch that has less than $15 million in deposits your costs are 10 times those of a larger branch. This means that 18% of branches in the U.S. today (or around 15,000 branches) are on the verge of collapse. On average these branches are losing around $50,000 to $75,000 a quarter. You can see a detailed analysis here from the team at Optirate.

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